U.S. stocks indexes opened flat on Friday in the middle of earnings season with new economic data today showing the U.S. economy grew just 0.7 percent in the 1st quarter of 2017, according to the Department of Commerce, the weakest level since 2014, following a 2.1 percent expansion in the previous quarter and below the 1.1 percent estimate.
President Trump’s latest plan to repeal and replace Obamacare lacks enough support in the House for a vote and it won’t occur today.
Lawmakers on Capitol Hill in Washington D.C. are working to approve a short term stop-gap spending measure that will keep the government open until May 5th while further budget negotiations continue.
On Wednesday representatives from Trump’s economic team unveiled the president’s new tax plan that includes a plan to lower the corporate tax rate from 35 percent to 15 percent, double the standard deduction, repeal the Alternative Minimum Tax, and lower the number of tax brackets from 7 to 3 percent, among other measures.
Although President Trump claims that the economic growth generated from the tax cuts would offset the drop in federal revenues, many economists remain skeptical and unconvinced.
According to the Tax Policy Center, Trump’s latest tax plan would benefit the highest-income households while federal revenues would fall by $6.2 trillion over the first decade before accounting for added interest costs.
Including interest, the federal debt would rise by $7.2 trillion over the first decade and by $20.9 trillion by 2036.
During an interview with Reuters on Thursday, President Trump said that he would prefer a diplomatic outcome to the dispute with North Korea over its ballistic missile and nuclear program but admitted a major conflict with reclusive Korean country is still possible.
“There is a chance that we could end up having a major, major conflict with North Korea. Absolutely,” Trump told Reuters.
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